David Arcaro : Okay. Understood. Thank you so much.
Pedro Pizarro : Thanks Dave.
Operator: Thank you. Our next question is from David Paz with Wolfe Research. And sir, your line is open.
Pedro Pizarro : Hello, David.
David Paz: Yes. Hello guys. Thank you for the time. Just on the growth rates, can you maybe address where – would you be on the low end or lower half of your growth rate if the ROE remains at 10.05%.
Maria Rigatti : We assume 10.05% across the entire range 5% to 7%. S,o it’s embedded in all of our scenarios.
David Paz: Okay. And then, forgive me if this slide here I am missing it. But what level of cash recoveries are you expecting aside from GRC in the TKM, which I know you’re not expecting, but aside from those proceedings, what level of cash recovery to ‘28 has been embedded in your plan? I think for instance, you had $1 billion of recovery in 2024, in the slide earlier this year, I believe. Any sense of what we should assume for cash recoveries through ’28?
Maria Rigatti : Yeah. So in fact, over the past couple of years, we’ve actually recovered $3 billion in cash from these memo accounts that folks have heard us talk about before. Over the next two years, we expect to recover about $2 billion from those same types of accounts. And just to just to reiterating and clarify, maybe something that you mentioned, we are not assuming recovery on any of the ‘17, ‘18 Wildfire Legacy claims.
David Paz: Right. Right. Got it. Okay. Thank you.
Operator: Our next question is from Nick Campanella with Barclays. Your line is open sir.
Nick Campanella : Hey everyone. I hope you’re doing well. Good to reconnect. Thanks for my question. I guess, I’m sorry if I missed it, as well. But acknowledging that you reaffirm in ‘23 as well as the 570 midpoint for ‘25 just can you give us a sense of how to think about ‘24? Are you going to be in that 5% to 7% range?
Maria Rigatti : Yeah. So, we have a number of things that we are going to be looking at moving pieces before we get formal guidance for 2024. So we still have our track for items that have to be resolved. We have other regulatory filings. I think frankly, when we are tracking interest rates, we will be looking at the CCM potentially triggering. So, we will be providing that update when we give guidance. Now, I just do want to reiterate that that CCM trigger is relevant, but it’s not relevant for our ‘21 through ‘25 or 25 or our ‘25 through ‘28 5% to 7% EPS CAGR.
Nick Campanella : Absolutely. And I guess, that’s a good segue. Have similar question to Anthony just some CPUC process, but the CCM trigger can you just walk us through the timing. Obviously, I guess you filed an advice letter in October with the goal to have something out by year end. But just how do you kind of see it playing out?
Maria Rigatti : Yeah, so the way the process works is, once the measurement period ends, so that that would be September 30th is the end. We would then in October be filing an advice letter. The Tier two advice letter which means it goes to the energy division. And the energy division can disposition the letter. People are permitted to protest if if they desire that and if they do, then the energy division will make a decision as to whether or not they will continue to be the entity that dispositions it or if they send it to an ALJ or the broader commission. We believe that it is fully reasonable to have the trigger go – be triggered given the current environment. Remember that the interest rate changes that are going on right now are really fundamentally the reason why the commission adopted a CCM or a cost of capital mechanism, 12 or 14 years ago.
